Platforms, tools, and systems that aid in the management of an HR department’s work are critical in any business. HRIS, HCM, and HRMS are all excellent HR technologies that businesses use to manage recruitment and human resource processes, as well as other people-related activities.
HRIS, HCM, and HRMS are all extremely useful, but what exactly do they mean? When and how should they be used? And what if there is a distinction between them?
What is HRIS: Human Resource Information System
A human resource information system (HRIS) is a piece of software or an online platform that aids in the management of a company’s human resources operations, with a focus on people, procedures, and policies.
An HRIS is a data-driven system that houses master employee data and provides the organization with digestible information and insights. At the heart of human resource information systems is an employee database, which is supported by functional tools.
HRIS is primarily concerned with personnel tracking and recruiting, but it also tracks employee working hours and monitors workflows to aid in the development of organizations.
The following are the primary characteristics of a human resource information system:
- Database administration (employee data, tax data, historical background checks, etc.)
- Management of time and labor
- Management of absences
- Administration and management of benefits
- Portals for self-service and the ability to update personal information
- Workflow visualization
- Employee interaction
- Acquisition and retention of talent
- Development and training
- Options for applicant tracking
- Routine HR tasks can be automated (holiday requests, review scheduling, feedback collecting, training tracking, performance, and development)
What is HCM: Human Capital Management
Human capital management (HCM) is the management of employees in a company. This type of system suite includes all of the features of HRIS as well as talent management capabilities.
A human capital management system typically includes tools for talent acquisition, talent management, and talent organization in order to improve the management of HR actions ranging from onboarding to performance tracking, compensation to offboarding.
Human capital management (HCM) is the administration of employees. It combines various features and tools, such as payroll documents, timesheets, and productivity analytics, to make it easier for businesses to organize and track everything employee-related. Overall, HCM can be tailored to each organization’s activities and actions. Human capital management is also a strategic approach that includes all of the practices, processes, and systems used for people management and development.
The following are the primary tools available in an HCM system:
- Workforce Acquisition
- Covering the entire hiring process
- Online recruitment assistance and management
- System for tracking applicants (ATS)
- Procedure for Onboarding
- Employee management
- Time and attendance tracking.
- Performance management
- Creating and fostering company culture
- Managing and optimizing the employee life cycle
- Picking a Career
- Competency monitoring
- Planning for Succession
- Training, learning and development
- Budgeting / Compensation
- Employee engagement characteristics
What is HRMS: Human Resource Management System
Human Resource Management Systems (HRMS) typically include all of the features of an HRIS as well as HCM capabilities. When you purchase an HRMS system, you will gain access to everything included in an HRIS and HCM, as well as a payroll system and some tools for more efficient labor management.
The following features are included in an HRMS:
- HRIS and HCM systems’ most common features and capabilities
- Payroll processing and wage calculations are automated
- Time administration
- Labor administration
Organizations can increase their productivity and efficiency by implementing a well-designed time and labor management process. As a result, an HRMS is the most complex software of any HR tool.
HRIS vs. HCM vs. HRMS
In essence, HRIS, HCM, and HRMS systems are very similar. The most important difference is that they all deal with the human resources department, the workforce or employees, and all related issues and concerns such as employment, recruitment, orientation, training and development, payroll and benefits, performance analysis, and other work-related services to employees.
HRIS and HRMS are the most similar because they both use software with similar features, though one has more complex features than the other. HCM is the most diverse of these, referring to a comprehensive HR software suite.
The distinctions between HRIS, HRMS, and HCM systems are blurred, as these terms are frequently used interchangeably. So, before investing in software, it is critical to review its features and benefits. The system you select is entirely dependent on the needs, size, and goals of your organization. Each piece of software contributes to greater efficiency and productivity.
Furthermore, a human resource management system not only assists your organization in managing HR-related tasks, but it also provides a positive experience to your employees and potential candidates. Each software offers an easy-to-use platform that digitally supports the onboarding process and employee management.